Question

NPV profile. ​ Siesta, Incorporated is looking at a project and has the appropriate cash flow. ​ However, there is much disagreement on the appropriate discount rate to use with the project. ​ Aracely, the​ CFO, has requested that you provide the NPV at various interest rates between 0 % and 40 % at 2 % intervals. That​ way, when Siesta is able to access the proper discount rate for this​ project, it will know if the project is a​ "go". In​ addition, graph your NPV results at each interest rate to show the​ project's NPV profile. The cash flow for the project is listed here in millions of​ dollars: ​(Click on the following icon in order to copy its contents into a​ spreadsheet.) Year 0 1 2 3 4 5 6 7 8 CF negative 33.29 3.56 5.56 9.16 14.69 18.21 20.88 16.66 11.38 The NPV for a discount rate of 6 % is ​$ 40 million.  ​(Round to f

Answer 1

Rate	NPV
0%	66.81
2%	57.00
4%	48.42
6%	40.89
8%	34.26
10%	28.41
12%	23.22
14%	18.61
16%	14.50
18%	10.82
20%	7.53
22%	4.57
24%	1.90
26%	-0.51
28%	-2.69
30%	-4.67
32%	-6.47
34%	-8.11
36%	-9.61
38%	-10.98
40%	-12.24